As property owners, you must pay Capital Gains Tax on a second property (non-principal residence) when the property is sold or transferred.

For example, if you buy a Whistler townhome for $500,000, and a decade later the property is valued at $750,000 when you die, the capital gains is $250,000. Half of that amount, or $125,000, is taxable.

However, if your spouse is still alive, ownership can be transferred to him or her. Know as a spousal rollover, this transfer can delay capital gains taxes.

other considerations

If you plan to build a vacation home, you should check the local municipality zoning regulations and future development plans.

services

If you plan to buy a property in a remote area, you should be clear about where you get services such as electricity and water. With BC becoming drier, relying on a well might not be the best option.

Vacation property buyers should seek professional advice from Revenue Canada. They can be reached at 1-800-959-8281.

This representation is based in whole or in part on data generated by the Chilliwack & District Real Estate Board, Fraser Valley Real Estate Board or Real Estate Board of Greater Vancouver which assumes no responsibility for its accuracy - Listing data updated on December 19, 2018.